Security technology firm Petards has reported a significant boost to half year revenues and narrowed operating losses.
The improved interim numbers follow a full six months trading of Affini, the Derby-based wireless specialist that Petards acquired last year. Chairman Rachid Abdullah also said underlying profitability at the group's other operations - including its rail business on Tyneside - had helped.
Revenue was up 78% in the six months to the end of June to £7.9m while operating losses reduced from £878,000 to £185,000. Adjusted Ebitda of £509,000 was reported, up from £33,000 in the same period last year.
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Across the group's rail division, which operates out of Gateshead, difficult market conditions were said to have continued with delays to customer decision making and order placement. Bosses said that work that did come to fruition drove higher revenue for the group's eyeTrain systems, and taken with higher revenues for its Automatic Selective Door Operation related software activities, prompted improved margins.
Petards told investors on the London Stock Exchange that it is still too early to say if the improvement is sustained, but it pointed to orders of more than £700,000 for two rail projects, received since June 30. The group's overall order book was £6.7m, down from £7.1m at the end of 2024.
Within the group's traffic control systems business - QRO Solutions - sights are on overseas sales of its Harrier AI and Harrier Mini camera systems. And despite broadly flat revenues in the group's defence division, higher margins gave a better bottom line performance with the expectation of new MoD projects in the pipeline.
Meanwhile, Affini, which provides communication technology to the transport, blue light, energy, defence and construction sector, performed ahead of expectations thanks to a larger volume of installations during the period. A multi-year renewal of a customer framework agreement was secured after the period end and related revenues are expected to be more than £1m per year to 2029, with an option to extend to 2031.
Mr Abdullah said: "Clear progress was made in the first half of 2025 in terms of the overall group's performance, including an improved trading result from Petards Rail, a good performance at Affini since its acquisition last year, and with the steps being taken to expand QRO's presence into overseas markets with its new Harrier ANPR products.
"The order book at June 30, 2025 of £6.7m (December 31, 2024: £7.1m), combined with the orders received in July and August, has increased revenue cover for 2025 to around 92%. While the group still requires to book and deliver further orders in the final four months of the year, the board remains confident in anticipating a much improved trading performance for the 2025 full year, in line with current market expectations."